FROM EIR DAILY ALERT
New York Post Features Warning of Looming Financial Crash
Sept. 23, 2018 (EIRNS)—Today’s New York Post sounds the alarm bell that not all is well with the U.S. and international economy. Under the headline “There Could Be a Financial Crash Before End of Trump’s First Term, Experts Say, Citing Looming Debts,” the article reports that “In 2018, experts say a $247 trillion global debt will be the main reason behind the next cataclysmic financial crash.” This will be far worse than 2008, the article asserts: “In 2008, global debt sat at $177 trillion in comparison to $247 trillion today.”
The article then runs through the various bubbles, such as student loans and auto loans, and explains that some financial experts, such as Peter Schiff, the CEO of Euro Pacific Capital, “blame the U.S. Federal Reserve and other central banks in part for the impending crisis.” Schiff told the Post:
“I think we are going to have a dollar crisis—you think the Turkish lira looks bad now, wait till you see when the dollar is imploding and we have a sovereign debt crisis in the U.S. The U.S. government is going to be given a choice between defaulting on the debt, or else massive runaway inflation.”
The warning is well-taken, but the biggest financial problem the world faces is not simply the “looming debt of $247 trillion,” but rather something that the Post article doesn’t even mention: The $1.5 quadrillion derivates super-bubble perched on top of that debt bubble, which can never be paid—as Lyndon LaRouche has long warned. Nothing short of a bankruptcy reorganization of the entire trans-Atlantic system, coupled with new credit-issuing mechanism centered on promoting a science-driver, high-technology economic recovery, will work.